NVIDIA (NVDA) Breakdown: Will the $90 Support Hold or Collapse?

Hey traders, let's break down what's happening with NVIDIA (NVDA) and how I'm approaching this setup. If you're interested in a deeper analysis of NVIDIA's growth potential and investment outlook, I've covered that in a previous post.

As you can see on the chart, we had a pretty solid uptrend that got me excited for a while. The green Heikin Ashi candles were flowing nicely, indicating strong bullish momentum. But now, we’ve hit an interesting point where things are taking a turn.

Key Resistance Area

First up, there’s a key resistance zone around $128. It’s no surprise that the price started pulling back right after touching that area—it’s been tested multiple times before, and once again, the bulls struggled to break through. I marked this zone on the chart with an orange box to emphasize how critical it is. This kind of price action is similar to what we've seen in other major earnings reports, where companies like Tesla and NVIDIA have shown significant movement after their announcements.

The Pullback

Now, as the price started to dip from that resistance, I noticed a pullback that’s pretty significant. This is where I’m keeping an eye on a potential reversal or further downside action. The sell-off is accelerating, and it’s getting close to an important support zone between $90 and $96.

Support Zone

Here’s the good part: I’ve highlighted a major demand zone between $90 and $96. This area has held up in the past and acted as a solid floor for the price to bounce off. I marked it with a purple box so I don’t miss the opportunity to potentially buy back in if the price bounces. For a more detailed comparison with another major stock, check out my analysis on NVIDIA and Tesla's growth potential.

What’s Next?

For me, the plan is straightforward: I’m waiting for the price to approach the support zone. If we get bullish signals (like a strong green candle or price action reversal), I’ll consider taking a long position with my stop just below the zone. On the flip side, if it breaks below $90, that’s my signal to step back and wait for a clearer direction.

Right now, it’s all about patience. I want to see if the support holds, and if it does, that’s where I’m ready to act. If you’re watching NVDA like me, keep an eye on these levels—this is where the action is happening.

Happy trading, and let’s see how this plays out!